MRO Magazine

Increased Cross-Plant Manufacturing Activities to Create Opportunities for the Global BOM Software Market Through 2020, Reports Technavio

July 4, 2016
By Business Wire News


Technavio analysts forecast the global bill of materials (BOM) software market to grow at a CAGR of more than 8% during the forecast period, according to their latest report.

The research study covers the present scenario and growth prospects of the global BOM software marketfor 2016-2020. The report also lists the automotive industry, electrical and electronics industry, aerospace and defense industry, and others as the four major end-user segments for the BOM software market.

Technavio ICT analysts highlight the following four factors that are contributing to the growth of the global BOM software market:

  • Improved efficiency of supply chain
  • Increase in mass customization
  • Need to enhance communication among business units
  • Increased cross-plant manufacturing activities

Improved efficiency of supply chain

The adoption of BOM solutions enables effective coordination among the production units and suppliers. These solutions help companies analyze the impact of supplier costs on the final product cost. Various departments of production units such as purchasing, manufacturing, design, engineering, and quality have access to supplier information through collaborative product data management (cPDM), which consists of BOM solutions.

According to Amrita Choudhury, a lead analyst at Technavio for enterprise application research, “The integration of supply chain and cPDM solutions helps companies in making purchase decisions and providing supplier analytics.” Through the adoption of cPDM and BOM solutions, the specifications are introduced to the suppliers to do a detailed study and describe the feasibility of the product specifications. This enables effective and efficient coordination and integration between the suppliers and the production units.

Increase in mass customization

The rise in demand for product customization has led to an increased use of BOM solutions across various industries. Initially, companies were dependent on mass production to reduce cost. However, mass customization is gaining popularity. Customization of the product can lead to the creation of a single BOM, which can be used once or multiple times. Thus, there is a shift from product identity to product technicality during the creation of BOM.

A customer-facing product configurator is used for the generation of BOM. These details are passed through the production units for manufacturing. cPDM solutions act as a tool for managing the life cycle of BOM and small components of the configurator.

Need to enhance communication among business units

Most companies have their business units such as designing, manufacturing, and assembling, spread across different countries. The adoption of cPDM and BOM solutions helps to establish effective communication among these units. These solutions enable data creation, sharing, integration, storing, retrieval, and management across the various divisions irrespective of their location. This leads to faster product development and faster problem solving, as well as reduced cost.

For instance, T3 Energy Services, a US-based company that manufactures and designs well control parts and components for the oil and gas industry, uses ENOVIA, a cPDM software developed by Dassault Systèmes. This software helps to manage design data and BOM across its multiple locations.

Increased cross-plant manufacturing activities

Most products are manufactured in different locations and then assembled. It is difficult for a single vendor to manufacture products with different specifications and requirements in a single location and to supply them to different locations simultaneously. The maintenance of data consistency and security is difficult when a product goes through two or more plants. The process requires reliable collaboration between manufacturing, engineering, research, and design units. BOM software ensures efficient data communication between these units.

For instance, it allows the engineering unit to communicate with the production unit to resolve issues related to quality, design changes, specifications, and manufacturing. “Thus, BOM, as a part of cPDM software, plays a critical role in cross-plant manufacturing activities,” says Amrita.

Browse Related Reports:

Do you need a report on a market in a specific geographical cluster or country but can’t find what you’re looking for? Don’t worry, Technavio also takes client requests. Please contact with your requirements and our analysts will be happy to create a customized report just for you.

About Technavio

Technaviois a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

If you are interested in more information, please contact our media team at

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770